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Surprisingly, growth stocks have performed well during past periods of rising rates. 

Investors might be interested to learn that domestic equities have historically performed well in two unexpected periods: (1) leading up to and through Fed rate hikes, and (2) periods of rising Treasury interest rates. What’s more, the cost of capital remains low despite the Fed’s recent tightening. This could support further M&A activity, which reached $3.6 trillion in 2016 according to Bloomberg, as companies look to acquire sales and earnings growth.

 

 

The current environment could fuel M&A activity

 


Past performance does not guarantee future results.

As with all mutual funds, the value of an investment in the Fund could decline, so you could lose money. Investing in small- and mid-size companies can involve risks such as having less publicly available information, higher volatility, and less liquidity than in the case of larger companies. Overweighting investments in certain sectors or industries increases the risk of loss due to general declines in the prices of stocks in those sectors or industries. Investments in technology companies may be highly volatile.

An investor should consider the fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information about the investment company can be found in the fund’s prospectus, or, if available, the summary prospectus. To obtain a copy, click here. Read the prospectus carefully before investing.

The Russell 3000® Index consists of the 3,000 largest U.S. companies based on total market capitalization. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 1000® Index consists of the 1,000 largest U.S. companies based on total market capitalization. The Russell MidCap® Index represents the smallest 800 companies in the Russell 1000® Index.

The Russell 1000 Value Index measures the performance of those companies in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Growth Index measures the performance of those companies in the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth values.

The Russell MidCap Value Index measures the performance of those companies in the Russell MidCap Index with relatively lower price-to-book ratios and lower forecasted growth. It represents the value oriented mid-cap segment of the U.S. equity market. The Russell Midcap Growth Index measures the performance of those companies in the Russell Midcap Index with higher price-to-book ratios and higher forecasted growth values.

The Russell 2000 Value Index measures the performance of those companies in the Russell 2000 Index with relatively lower price-to book ratios and lower forecasted growth. It represents the value oriented small-cap segment of the U.S. equity market. The Russell 2000 Growth Index measures the performance of those companies in the Russell 2000 Index with higher price-to-book ratios and higher forecasted growth values.

The Bloomberg Barclays US Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by US and non-US industrial, utility and financial issuers.

Indexes are unmanaged, do not include the effect of expenses, are not representative of any specific fund or product, and cannot be invested in directly.

The Funds are distributed by Victory Capital Advisers, Inc., member FINRA and SIPC, an affiliate of Victory Capital Management Inc. RS Investments is a Victory Capital investment franchise.

NOT A DEPOSIT • NOT FDIC OR NCUA INSURED • MAY LOSE VALUE • NO BANK OR CREDIT UNION GUARANTEE

©2017 Victory Capital Management

 

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